Examples Show Using The Right Shipping & Communication Tools for Reduce Costs
By Paul Johnson, President CMS – Complete Mailing Solutions
This blog will provide real-world examples of how the right tools can increase productivity and reduce costs. These examples were chosen to illustrate how worthwhile it is to consider more than just price when solving your communication challenges.
Our last blog, “4 Considerations To Ensure You Have The Right Tools For Your Shipping & Communications”, outlined a number of areas that are not typically considered when acquiring mailing or shipping equipment. In other words, sometimes what you don’t think about can often lead to unforeseen costs that impact your bottom line.
Business Case #1 – Improved Efficiency
Take for example, one of CMS’ Clients that manually folded and inserted over 7,000 checks and statements each month. This required 3 staff members to put other tasks aside and allocate a total of 18 hours each month to this project. At an industry average hourly rate of $15, this cost the company $3,240 every year.
By introducing an easy-to-use folder/inserter, this process was reduced to a single employee for 1 hour each month. As a result this change provided a savings of over $3,00 each year in labor that could be utilized toward revenue-generating tasks.
Business Case #2 – Reduce Costs & Improved Visibility
One of our legal Clients required delivery confirmation each time legal papers were mailed. Their employees were manually filling out over 250 Certified Return Receipt green cards each year, waiting for the return confirmation and filing the green cards. Using 2020 postal rates, this law firm was spending $6.90 for every Certified Mail Return Receipt letter sent – over $1,725 in postage each year.
We introduced our ConnectSuite software, which enabled them to send Certified Return Receipt Mail electronically (ERR). This not only saved the Firm $1.15 on each letter sent, in short they gained:
- A savings of 5 hours/week by eliminating manual preparation of green cards
- Full audit trail and archiving of Certified Mail and other required legal documents
- Elimination of physical file space for storage
- Electronic storage into their document management system
Additionally, this firm was better prepared for future planned expansion.
Business Case #3 – Enhanced Efficiency & Confidentiality
Another one of our clients was mailing 1,000 business critical multi-page mailings daily. These were customized to each of their clients which ranged from 5- 8 pages. This company employed one full-time employee dedicated to this task. He manually grouped mailings based on the number of inserts in each envelope because their folder/inserter could only run the same number of pages at one time.
As a result of assessing their situation, we introduced the OMS software. OMS uses barcode technology to identify all pages that should be included for each client. The advantage of barcodes:
- Eliminate the need to pre-sort groups of mailings based on the number of inserts
- Fully automate the inserting process without the need to change set-ups
- Ensure 100% accuracy – right contents go to the right person
Subsequently, this company is now able to prepare their 1,000 mailings in one hour, vs. the 8 hours it took manually. Consequently, their dedicated employee can now be utilized on other revenue-generating projects.
Business Case #4 – Upgrade to Savings
One of our Clients was trying to “make do” with a mailing system that was not designed to automatically weigh envelopes of various sizes and weights. One-at-a-time weighing was draining employee’s time and efficiency in their mailroom.
During CMS’ Discovery stage of our Proven Process, we learned they were shipping many packages via UPS and FedEx that could have been shipped through the USPS at a significant savings.
As a result of our Discovery, we recommended a three-part solution:
- Upgraded Mailing System with a dynamic in-line weighing capability that could automatically weigh different size and weights of envelopes on the fly. This system saved approximately 13 hours of labor each month.
- Neoship Software that allowed them to:
- Compare shipping rates to identify the best rate
- Allowed shipping from remote locations.
- Consolidated reporting.
- Training on proper utilization of the USPS IM®pb to reduce Priority Mail rates by 13% and First-Class parcel rates by 40%
Subsequently, the net benefit to our Client was a savings of approximately $1,200/month in expenses. Additionally, our suggestions improved visibility through reporting and being able to allocate employee resources to more important tasks.
Business Case #5 – Outsourced Solution
An auditing/inspection Client had been expanding significantly in the past few years. However with that growth they were then faced with how to best manage their communications. Since there was some question whether they level of growth would be sustained, they were reluctant to hire additional employees.
After meeting with them, our recommendation was to partially outsource a portion of their larger mailings. Outsourcing to a mail production facility using Neotouch provides several advantages. This solution allows them to:
- Develop communications using their existing office applications.
- Forward materials to Neotouch’s state-of-the-art production facility for printing, folding, inserting, metering and mailing with a single click of their mouse.
- Provides the ability to email communications to their Client’s, a capability they did not have previously.
- Trace and archive (up to 11 years) all documents.
Above all, this solution is scalable and allows our Client to dedicate employees to revenue-generating tasks. Projected savings as a result of our recommendations was well over $7,000 per year.
These cases provide just a few examples of the benefits of thinking outside the box. CMS is your 360° Advocate, we are here to listen to your needs, solve issues and provide on-going support. We are your local resource for all questions, concerns and needs. Call us today to see how we can help you – 303-761-0681.
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